Putin played to Soviet-era nostalgia when he called for building
a Eurasian Union. On October 4, Putin published an article in
Izvetiia announcing his Eurasia Union initiative that will have
an economic focus similar to the euro zone, though led by Russia
politically and bears a suspicious resemblance to that of the
former Soviet Union.

The objective is not to rebuild a unified state dependent
financially on Moscow, but create a supranational political and
economic structure that gives Moscow strategic oversight of
countries on its periphery. Russia already has a customs union
with Belarus and Kazakhstan, and Kyrgyzstan has indicated it
intends to join. That union integrates their economies and
reduces restrictions on movement of goods across their borders.

A Russian-led Eurasia Union will attract former Warsaw Pact
countries especially now that Europe is collapsing. It also
suggests a reorientation of Russian foreign policy strategy
under soon-to-be-president Putin that de-emphasizes Europe and
puts Moscow in the catbird seat.

Keep in mind even though the proposed Eurasia Union starts as a
political and economic association it could become a defense
alliance. The former Warsaw Pact was the military compliment to
the Council for Mutual Economic Assistance, the regional
economic organization for the former communist states of Eastern
Europe.

Putin is modernizing Russia’s military already armed with the
world’s largest atomic weapons arsenal. Last month Putin
declared, according to Interfax, the Russian armed forces will
be brought up “to a new level in the next five to 10 years” so
that both the army and the military-industrial complex “are
capable of guaranteeing Russia stable peace without undermining
the national economy.”

Moscow is aggressively rebuilding its atomic strike capability,
doctrinally the nation’s primary means of defense. For example,
just last week Russia’s Northern Fleet successfully carried out
the salvo launch of two Bulava intercontinental ballistic
missiles from the Yuriy Dolgorukiy, a submersed nuclear
submarine in the White Sea. Such strategic modernization of its
nuclear forces does not contravene the new Strategic Arms
Reduction Treaty with the U.S., but it is leaving the U.S. in
the dust because America stopped atomic weapon modernization
projects.

Moscow is also aggressively building conventional expeditionary
platforms. It is constructing over 100 naval ships, over 1,000
helicopters and 600 military aircraft including the fifth
generation Sukhoi PAK-FA fighter. Meanwhile, Russian ships and
aircraft are returning to distant seas and air space to
challenge the U.S.

Putin promises an anti-U.S. foreign policy. He told the United
Russia congress he “will continue to pursue an active foreign
policy” while “straightforwardly and honestly” defending
Russia’s interests. He cautioned that dialogue with Russia is
"possible only on an equal footing" and that "nothing can be
imposed on Russia from outside."

These comments are aimed at the U.S., which Putin considers
Russia’s primary adversary. His concern is with NATO’s expansion
into Eastern Europe and America’s European-based ballistic
missile defense (BMD), which he claims threatens Russia’s
sovereignty.

Putin is especially weary of America’s BMD which he says is
intended to neutralize Russia’s nuclear deterrent and is a
pretext to station American forces in Eastern Europe. Washington
argues the BMD is to counter the emerging Iranian missile
threat.

But President Medvedev and by association Putin threaten that if
the U.S. continues to refuse cooperation with Russia regarding
the BMD, Moscow will deploy its Iskander mobile ballistic
missiles and early warning system on its border with Poland and
Lithuania. He will target the American BMD and fit the Iskanders
with advanced maneuverable re-entry vehicles and penetration
aids.

On other fronts Moscow is re-engaging the Middle East, such as
building a military port in Syria to re-establish a
Mediterranean presence. It is playing an active and unhelpful
role in the ongoing nuclear crisis with Iran, leveraging its
control of the Northern Distribution Network into Afghanistan,
contesting arctic region claims, and moving back into areas that
haven’t seen Russians for two decades.

The election protests express genuine discontent with Russian
corruption. But the real story is the Putin dynasty is strong
and soon will shed any pretense of reform. It will tap into the
growing Russian nationalism to rebuild Moscow’s stature
Soviet-style with a back-to-the-future agenda which means the
Russian bear is back with a vengeance.